The Fed Monopoly

The people are starved for credit, for purchasing power. The big corporations have little desire in discovering the "demand" of consumers -- so much easier to start a war and have the government as a captive buyer -- the government having the credit to buy (which the people no longer have) -- the government is always able to tax to make its debt payments. Industry, always investing with the credit they get from the banking system -- invests abroad. -- invests where labor is cheapest, invests where pollution is not costed to the polluter, etc. The problem is not fiat currency -- it is that money expansion through the Fed is by loans at interest. The government has to pay compound interest on that debt. What is wrong with the system is that there is a monopoly by a small grroup of people on credit in this country. If populists responsible to government regulation ran the Fed it would work fine -- in fact nationalizing the Fed would not necessarily solve problems like many reformers think it would. Remember how the government is controlled. George W. Bush or Nancy Pelosi would run the Fed exactly as it is being run now; they would run it exactly for the same interests of the same group of merchant bankers who make the campaign contributions and control the mass media which determines what the people know and think about each politician. Dick Eastman Yakima, Washington http://www.rense.com/general76/rpnp.htm The Federal Reserve Monopoly over Money By Ron Paul 4-10-7 Recently, I had the opportunity to question Federal Reserve Chairman Ben Bernanke when he appeared before the congressional Joint Economic committee. The topic that morning was the state of the American economy, and many of my colleagues raised questions about how the Fed might better "regulate" things to ease fears of an economic downturn. The tenor of my colleagues' questions suggested that Mr. Bernanke's job is nothing less than to run the U.S. economy, like some kind of Soviet central planner. Certainly it's true that Mr. Bernanke can drastically affect the economy at the drop of a hat, simply by making decisions about the money supply and interest rates. But why do members of Congress assume this is good? Why do we accept without objection that a small group of people on the Federal Reserve Board wields so much power over our economic well-being? Is centralized, monopoly control over our money even compatible with a supposedly free- market economy? Few Americans give much thought to the Federal Reserve System or monetary policy in general. But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued. The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration. The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch-- Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference-- that threatens to impoverish us by further destroying the value of our dollars. fiat money http://www.bankofcanada.ca/en/glossary/glossfiatmoney.html Money (e.g., bank notes and coins) that is legal tender by government declaration and is not backed by gold or silver. Its intrinsic value is divorced from its monetary face value (i.e., the value stated on it), which rests on public confidence in the issuing authority—usually the central bank. NOTE: All currency in circulation in Canada is fiat money.

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